USD/JPY: Strong support at 107.20/15

Jason Sen DayTradeIdeas.co.uk

USD/JPY, EUR/JPY, CAD/JPY

USDJPY best support at 108.00/107.80 today. Longs need stops below 107.60.

EURJPY fooled me with a false breakout above 130.70. The pair unexpectedly crashed 100 pips from 130.96.

CADJPY I have been waiting for the pair to break lower & complete the head & shoulders pattern for a sell signal. So difficult in this last week, with erratic, volatile conditions. After we broke lower, we shot higher to 8690 before the expected collapse happened.

Daily Analysis

USDJPY best support at 108.00/107.80 today. Longs need stops below 107.60. A break lower however signals the next leg lower in the short term bear trend targeting 107.50/45 then strong support at 107.20/15.

Longs at 108.00/107.80 target minor resistance at 108.35/40 then strong resistance at 108.95/05.

EURJPY crashed through first support at 130.10/00 to test support at recent lows of 129.80/70, leaving a huge negative shooting star candle. We have an important bull trap here. After yesterday’s false breakout we must be careful, but a break below 129.65 SHOULD signal further losses to 129.25/15. Below 129.05 expect very strong support at 127.80/70.

Gains are likely to be limited in the bull trap with first resistance at 130.10/20. Shorts need stops above 130.30. Next target & resistance at 130.60/70.

CADJPY finally reaches the target of 8580/70 but it has been impossible to hold a short position. Further losses are likely to the best support for today at 8510/8490. Longs need stops below 8475.

Gains are likely to be limited with first resistance at 8615/25. Strong resistance at 8650/60.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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